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Updates Of the Day
1.Bank of Baroda invite applications for empanelment for Concurrent Audit.
2.Bad debts can be claimed in subsequent assessment years even if bad debts write off in earlier years (Calcutta High Court ) [Duncan International Limited. vs. CIT.]
3.Penalty under section 271C exigible if delay in remittance of TDS for unreasonable cause. (Kerala High Court) [Classic Concept Home India Private Limited vs CIT ]
4.CBDT issued instruction on framing of scrutiny assessments in cases of assessee engaged in the business of mining.
5.CBDT issued revised and updated guidance for implementation of transfer pricing provisions.
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NEW DELHI In a bid to broad base retail participation in stock markets the Department of Disinvestment (DoD) has suggested tax incentives for small investors to invest in the equity market. The DoD wants a broad based retail market to be created to get good value for the government stake sale planned in several PSUs. The department has made a formal proposal for tax incentives to the Department of Economic Affairs (DEA) in finance ministry, a senior official said.

NEW DELHI Looking to streamline the taxation procedure, CBDT has issued detailed guidelines on trans fer pricing cases that are expected to bring about uniformity in determining arm's ength price in similar instances. As per the regulations, each Transfer Pricing Officer (TPO) will be assigned a given number of important and complex cases not exceeding 50. The Assessing Officer will be required to record in writing that the TP case falls in his jurisdiction and also the income involved in international transactions before proceeding with the case and referring it to TPO for further action.

NEW DELHI Finance ministry has sought views of India Inc on firming up provisions with regard to Place of Supply (PoS) rules in five sectors, ncluding e-commerce and banking, for a smooth rollout of the Goods and Services Tax.The ministry has asked industry associations to submit their views on the transitional provisions and core exemptions to ensure hassle free implementation of the new indirect tax regime, a government official told PTI. Since GST s a destination based levy, the tax has to be mposed at the PoS of goods or services.

A charitable institution is entitled to set apart 25 per cent of the total income for charitable purposes even if it is not spent in the assessment year. It is an option permitted in the Income Tax Act but the limit should be observed. The Supreme Court stated that both the commissioner of appeals and the Andhra Pradesh High Court erred while allowing a larger percentage in the case, CIT vs G RGovindarajulu. The total income was Rs.99 lakh out of which Rs.47 lakh was spent on charity and Rs.32 lakh was set to be spent for charitable purposes in the following year. The assessee claimed that it was therefore entitled to have deduction of the entire amount and its tax liability was nil. The assessment officer did not agree stating that no option for the purpose was exercised before filing the returns and it was not done in a valid manner. Though the appellate authority and the high court accepted that contention, the Supreme Court pointed out that Rs.32 lakh was more than 25 per cent of …

In a bid to attack domestic black money, the government has set sights on India’s vast mining sector. The Central Board of Direct Taxes ( CBDT) under the finance ministry has instructed income tax ( I- T) officials to scrutinise production details and tax returns filed by the companies engaged in mining activities and take appropriate action in case of any discrepancy.“The government is quite serious about curbing the black money menace, be it stashed abroad or domestically.To curtail domestic unaccounted income, we’ve identified specific target sectors.Mining is one such sector where we’ve discovered serious instances of tax evasion,” said a government official.The government has discovered significant differences in the annual returns filed by mining firms with the Indian Bureau of Mines ( IBM) and the companies’ income tax returns.

In an instruction issued to all chief commissioners as well as the director- general, CBDT said: “ While scrutinising cases of entities engaged in the bu…